Lumber Liquidators Holdings Inc., under federal investigation over allegations that it sold toxic flooring, said Chief Executive Officer Robert Lynch unexpectedly resigned from his post.
Company founder Thomas Sullivan will serve as acting CEO during the search for a permanent replacement, Toano, Virginia- based Lumber Liquidators said Thursday in a statement. John Presley, the company’s lead independent director, will become non-executive chairman as Lynch steps down from the board.
Lumber Liquidators is trying to win back customers after “60 Minutes” aired a report in March that said it sold Chinese-produced laminate flooring with excessive levels of formaldehyde, a known carcinogen. While the company has assured consumers its products are safe, its sales have since slid and the U.S. Consumer Product Safety Commission is investigating the allegations.
John Feld, a spokesman for Lumber Liquidators, declined to comment beyond the statement.
The shares tumbled 18 percent to $20.66 at 8:40 a.m. in early trading in New York. Lumber Liquidators had already slid 62 percent this year through Wednesday.
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